British stockbroking giant Hargreaves Lansdown has signed a deal to buy a client book of 7,000 investors with a combined £370m ($582m) of assets from JP Morgan Asset Management.
After September 2015, JP Morgan will no longer offer FTSE equities and other non-JPM investments to direct clients. It will only be offering its own range of Oeics and investment trusts, invested directly or via an Isa.
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In addition, JP Morgan will cease to offer the JP Morgan Sipp and Cash ISA. Instead it will offer just its range of open-ended funds and investment trusts to its clients who come direct or invest with the group through an Isa.
Clients currently holding investments and wrappers that will no longer be available through JP Morgan will automatically transfer over to Hargreaves Lansdown’s Vantage platform after 25 September 2015.
There will be no transfer charges levied by JPM or Hargreaves Lansdown when clients are transferred to Vantage.
The move is expected to affect nearly 6% of J.P. Morgan’s 126,000 individual client accounts.
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By GlobalDataJP Morgan Asset Management UK funds head Jasper Berens said: "Whilst we remain fully committed to providing excellent service to our existing direct clients, this transition reflects our decision to focus on our core strength in fund management."
Hargreaves Lansdown chief executive Ian Gorham said: "The breadth of Hargreaves Lansdown’s service means we are able to accommodate the full range of investments that these clients currently hold."
